Focus Point - Flat tax reform at handCommentary by Pete du Pont
June 17, 2000
I'm Pete du Pont with the National Center for Policy Analysis. At last! Eighty-five percent of those polled have revolted against the high level of taxation, and conservative politicians have rallied behind a flat rate tax plan!
Unfortunately, it's in Canada, not here. But hey, why not let Canada lead the way?
Canada's top federal-provincial personal income tax rate is 48 percent and kicks in when workers have earned the U.S. equivalent of $41,000, a figure that makes even our high tax rates look mild in comparison. So the Canadian alliance, the opposition party, is pushing a 17 percent personal flat tax.
There would be a personal exemption of $10,000 plus a $3,000 deduction per child. The plan would raise tax-exempt retirement contributions and cut employment insurance premium rates. It would cut the top tax rate to 29 percent and about two million Canadians wouldn't pay any taxes at all.
I hope it happens. Maybe Canada's ideas can show us the way in tax reform. Nothing like learning from your neighbors.
Those are my ideas, and at the NCPA, we know ideas can change the world. I'm Pete du Pont, and I'll see you next time.